An independent school forced to close because of financial problems is celebrating a new lease of life.

Staff and pupils at Newlands School in Seaford can now look to the future after an agreement with its creditors was approved.

The school closed for two weeks in April because of mounting debts before wealthy parents Mike Holland and John Summers came forward with a multi-million pound rescue package.

Scores of people including staff were owed money by the school but they have now agreed to a Company Voluntary Agreement (CVA) whereby they will receive a percentage of the money they are owed, meaning the school can begin to move out of administration.

Headteacher Oliver Price said: "This means our future is secure. It is a tremendously important day for Newlands. We have come through a difficult period thanks to Mike and John and now we are looking at a very bright future."

He said the school, which is currently based at Newlands Court in Sutton Avenue, was on track to return to the main campus in Eastbourne Road in September and pupils, parents, staff and governors would celebrate the news at a ball this Saturday.

Landlords the Chittenden family had hoped to prevent the school returning to the main site.

They launched a High Court battle for more influence in the creditors' agreement but a judge found in favour of the school at the hearing last week.

Ed Stroud, who is married to Jane Chittenden, said they did not believe the school had a viable future without a full complement of pupils.

The school previously had 450 pupils. About 120 have so far agreed to return in September.

Mr Stroud said: "Mike Holland and John Summers have made a lot of promises and I hope they keep them or people will be very disappointed."

Mr Summers said he was delighted the CVA was approved as it meant pupils could make full use of all the school's facilities.